Other things equal, which of the following would shift an economy's production possibilities curve to the left?
A. The discovery of a low-cost means of generating and storing solar energy.
B. The entrance of more women into the labor force.
C. A law requiring mandatory retirement from the labor force at age 55.
D. An increase in the proportion of total output that consists of capital or investment goods.
Answer: C
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Autarky is a situation where one country does not trade with other countries
Indicate whether the statement is true or false
Refer to Figure 9-1. Under autarky, the consumer surplus is
A) $195. B) $260. C) $300. D) $555.
Which theory does NOT support unrestricted free trade between countries
What will be an ideal response?
The problem for a central bank setting a zero inflation policy would be:
A. firms would have to cut the nominal wage to reduce the real wage. B. economic growth would also have to be zero. C. it is impossible to have zero inflation. D. the risk of high employment.